2026-01-01
The European Banking Authority issued an opinion on the Austrian Financial Markets Authority's proposal to raise the sectoral systemic risk buffer for commercial real estate exposures from 1% to 3.5%. The EBA does not object to this measure, acknowledging the significant increase in non-performing loans and systemic risks within Austria's CRE sector. The Authority also highlights the need for continued coordination to prevent regulatory overlaps with Pillar 2 requirements and the internal models output floor.